Minister Westra van Holthe says the NT Government would like to see the property returned to pastoral production.

"It is the intention of the Northern Territory Government that it remains a pastoral lease." he said.

"We want to see that that land is used for productive purposes and this Government is not into tying up productive land for non-productive uses."

Carbon farming is not allowed under the current Northern Territory pastoral lease conditions.

While the NT Government are currently amending the pastoral act to diversify use of pastoral land, that will not include carbon farming.

"I need to be convinced as the Minister that there's some value in this for the pastoral sector.

"But until then carbon farming on pastoral properties in the Northern Territory is off the table."

The former director of R.M. Williams Agricultural Holdings, the former NT Minister for National Resources, Environment and Heritage Karl Hampton and the Federal Department of Sustainability, Environment, Water, Populations and Communities were contacted for comment.